Kingston Communications (HULL) PLC (“Kingston”) has today acquired Mistral Internet Group Limited (“Mistral”) for a cash consideration of £19.6 million. Mistral is a UK business internet service provider, specialising in the delivery of connectivity, hosting and data protection services for businesses.
This acquisition is part of Kingston’s ongoing strategy to accelerate the growth and capabilities of its UK broadband business. Mistral increases the scope of Kingston’s internet operations, deepening its expertise in the managed services sector of the fast growing broadband internet services market.
Mistral, which provides a strong complementary fit with the services already provided through our Eclipse Internet brand, will be managed as part of the Kingston Communications business.
Mistral currently has a customer base of approximately 5,000 business and public sector clients as well as providing specialist services for a number of large corporate clients.
In the year ended 31 December 2005, Mistral reported turnover of £19.7 million, an EBITDA of £2.5 million and loss before tax of £0.4 million. As at 31 December 2005, the business had gross assets of £16.3 million including a cash balance of £0.9 million. The business has grown strongly over the last 12 months and based on current performance, the acquisition is expected to be immediately earnings accretive.
Commenting on the acquisition, Malcolm Fallen, Chief Executive of Kingston Communications, said: "Mistral has an established reputation in the business broadband marketplace, offering a high quality range of services to its customers. The addition of Mistral to the Kingston Group will significantly enhance the depth and breadth of our existing internet offering and will accelerate our position as a leader in the provision of a range of broadband internet related services to smaller businesses across the UK."
About Kingston Communications:
Kingston Communications is a leading provider of communications solutions to businesses and public sector organisations throughout the UK.
The Kingston Group includes Affiniti, the communications integrator created from the coming together of Kingston Communications’ Business Services division, Omnetica and Technica in 2005. Affiniti provides secure voice, data, video, mobile, wireless and storage solutions that enable businesses to exploit the opportunities that come with converged communications.
Kingston’s national capabilities have been built on its strong foundations within East Yorkshire, where the company has been providing leading edge services to residential and business customers for over 100 years and where it has been a pioneer in the use of ADSL technology.
The Kingston Group also includes Eclipse Internet, an established and growing broadband ISP that delivers internet connectivity and services to businesses and consumers throughout the UK.
About Mistral:
Mistral Internet Group Limited (“Mistral” or “the Company”) is a leading independent ISP focusing on corporate and public sector customers in the UK. It provides a range of products and services aimed at connecting businesses to the Internet, and hosting and protecting their data. Through its broad product portfolio, the Company aims to act as a one-stop shop for its customers’ Internet infrastructure requirements and beyond.
The Company specialises in the provision of connectivity, hosting and security services. Mistral’s core connectivity products include ADSL, SDSL and leased line provision, while on the hosting side the Company provides a range of co-location, managed hosting and complex hosting solutions.
For further information please contact:
Anita Pace
Kingston Communications
Tel: 01482 602666, Mobile: 07770 744322
Colin Browne
The Maitland Consultancy
Tel: 020 7379 5151, Mobile: 07733 103
